Allianz Research

Allianz Global Wealth Report 2024:
Surprising relief

A hard Brexit could cost the EU EUR33bn in annual exports

The odds for a no-deal Brexit at the end of 2020 have considerably increased to 45%. While we do still expect a last-minute compromise, given the social, political and economic consequences of such an outcome on top of the continuing Covid-19 crisis in the UK and across Europe in general, a Hard Brexit could cost as much as EUR33bn in annual exports to the EU.

 

China: Winning export markets share despite the Covid-19 crisis

China’s exporters have been gaining market share since they exited the Covid-19 crisis. Out of the top 20 exporters in the world, China’s total market share now stands at c.25%, compared to an average of c.20% over 2017-19.

 

Eurozone: Double dip and structural weaknesses

As Covid19-related restrictions are retightened, we expect key European economies to contract again in the final quarter of 2020. We forecast GDP to drop by -1.3% q/q in Spain, -1.1% q/q in France and–1.0% q/q in the Netherlands.